UK-focussed social infrastructure real estate investment manager Newcore Capital has acquired 15 assets in the primary healthcare sector for a combined sum of approximately £50 mln (€60 mln).
Of the 15 assets acquired, 12 were purchased from a major UK REIT in a £25 mln portfolio transaction.
Representing a total net internal area (NIA) of 145,184 ft2, the acquisitions are geographically weighted towards Greater London and the Southeast. Of the total NIA, 88% is purpose-built, 57% is rated EPC A-B, and 90% is freehold tenure.
The 15 assets are let out on long-term leases to 31 different occupiers. Tenants include Northeast London NHS Foundation Trust, Kings College Hospital NHS Foundation Trust, Derbyshire Community Health Services NHS Foundation Trust, and Herefordshire & Worcestershire Health & Care NHS Trust.
The acquisitions adhere to Newcore’s wider strategy of investing in social infrastructure real estate assets that are resilient to the deflationary effects of technological change, with their use cases often necessitating the use of physical space. Other target social infrastructure sub-sectors for the firm include education, end-of-life services, childcare, EV charging, and waste management.
The investment manager recently announced that it had secured an £80 mln financing package from HSBC UK to support acquisitions in the social infrastructure sector.
Newcore is planning to deploy approximately £100 mln of equity into primary healthcare facilities over the next 18 months across both its value-add and core-plus strategies.
Harry Savory, chief investment officer at Newcore Capital, said: 'Primary healthcare represents the backbone of the UK’s healthcare system. Demand for facilities will only increase moving forward, with policymakers committed to making the NHS more accessible by improving the provision and quality of primary care as a community service.
'In a sector where growing demand is underpinned by demographic shifts and supply constrained by valuation practice, these acquisitions give us the opportunity to work with tenant partners to fund capital improvements and deliver positive societal and environmental outcomes. It is exciting to be working with the NHS on this journey.'
